China plans to update its Anti-Money Laundering laws by 2025, expanding regulations to cover cryptocurrency transactions.
In spite of the fact that China currently prohibits the use of cryptocurrencies, Chinese Bitcoin miners continue to control the majority of the worldwide network.
Ki Young Ju, the founder and CEO of CryptoQuant, has reported that Chinese mining pools continue to control more than 55 percent of the Bitcoin mining network.
However, Ju noted in a post on September 23rd, X, that the majority of Bitcoin mining is gradually shifting to mining corporations in the United States:
“Chinese mining pools operate 55% of the network, while U.S. pools manage 40%. U.S. pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia.”
In spite of China’s full prohibition on Bitcoin mining and trade, which went into effect in 2021, the country has managed to achieve a stunning level of dominance over the network.
China’s stance on crypto regulations poised for change in 2025
In response to the growing desire for more stringent oversight, China is preparing to make a significant adjustment to its Anti-Money Laundering (AML) legislation in 2025. This amendment will widen the application of these regulations to include cryptocurrency transactions.
According to prominent academics and financial professionals who participated in the discussions on the new draft of the anti-money laundering laws, the AML law involves a pretty broad scope, which makes it difficult for the document to be comprehensive.
The document cannot reflect the most pressing material until it establishes a framework. In 2021, China implemented a comprehensive ban on the use of cryptocurrencies, including the prohibition of off-shore exchanges from providing services and the prohibition of all forms of mining.
On the other hand, mainland users have discovered ways to enter the cryptocurrency market, which has led to the possibility of money laundering. Because cryptocurrencies are decentralized and technology has advanced.
The newly amended regulations intend to put an end to acts of this nature by imposing more stringent limits. Mike Novogratz, Galaxy Digital’s Chief Executive Officer, stated on X on July 14 that he has been hearing reports that imply China is “likely to unban” Bitcoin by the end of the year 2019.
Bitcoin miner revenue under pressure
August saw extreme pressure on Bitcoin miners worldwide, leading to the lowest revenue month in a year. Miner revenue reached $827.56 million in August, which is a decrease of roughly 10.5% from the $927.35 million recorded in July.
However, it was an increase of 5% over August 2023, according to data provided by Bitbo. Since September 2023, when they earned $727.79 million, Bitcoin miners have experienced the worst month they have ever had in terms of earnings.
Throughout the month, bitcoin prices remained close to $25,000. August saw the mining of 13,843 BTC, a slight decrease from the roughly 14,725 BTC mined in July.
